Shakira wins appeal in Spain tax fraud case

Spain’s High Court has acquitted Colombian pop star Shakira of tax fraud in a 2011 case, overturning a €55 million fine imposed by the Spanish tax agency.

The court also ordered the Spanish Treasury to reimburse her more than €60 million, around $70 million, including interest, according to her defence team.

The ruling came following an appeal by the singer, best known for hits including Hips Don’t Lie.
The court ruled that tax authorities had failed to prove Shakira spent more than 183 days in Spain in 2011, the threshold required under Spanish law to consider her a tax resident that year.
The ruling does not affect tax years after 2011.

Spanish tax authorities had argued that Shakira was linked to Spain through her relationship with former FC Barcelona footballer Gerard Piqué and that her centre of activity was in the country.

However, the High Court said the penalties were unlawful as they were based on the assumption that Shakira was a tax resident in Spain in 2011, a claim the court said had not been proven.

Spain’s tax agency said it would appeal the ruling before the Supreme Court. No reimbursement will be made until the appeal process is completed.

Shakira’s lawyer, Jose Luis Prada, welcomed the ruling, saying it came after an “eight-year ordeal” and reflected a lack of rigour in administrative practice.

In a statement, Shakira said she hoped the ruling would set a precedent for others facing similar battles with tax authorities.

In a separate case, Shakira reached a deal with Spanish prosecutors in November 2023 to avoid trial over allegations that she failed to pay €14.5 million in income tax between 2012 and 2014.

Under that agreement, she accepted the charges and agreed to pay a fine of more than €7.3 million.